Micro Analysis of Amul Dairy and Gujarat Co-operative Milk Marketing FederationDownload ed from a2zmba.blogsp ot.

com P r e f e r e n c e D i v i

d e n d 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 E q u i t y D i v i d e n d % 0 . 5 9 0 . 5 8 0 . 5 1 0 . 3 6

Interpreta tion
Up to 2003 raw material cost has remained steady, but in 2004 it has declined by 18%.Selling and

Administrative expenses have also shown a declining trend such that in 2004it is showing only a nominal part of total expenditure.

Even though there is a decline inthe abovementioned expenditures, the total expenditure has almost remained constant.This is

due to a drastic increase of 1033% in other manufacturing expenses. Operating profit is showing a declining trend since 2002.

Common Size Statemen t of Balance sheet of GCMMF

2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 SOURCES OF FUNDS: S h a r e C a p i t a l 2 3 . 6 3 2 2 . 3 1 4 0 .

6 2 2 5 . 2 0 R e s e r v e s T o t a l 3 0 . 5 5 3 0 . 3 2 4 2 . 3 2 2 7 . 6 0 T o t a l S h a r e h o l d e r s F u n d s 5 4 . 1 8 5 2 . 6 4

8 2 . 9 4 5 2 . 8 0 S e c u r e d L o a n s 4 5 . 8 2 4 7 . 3 6 1 7 . 0 6 4 . 6 5 U n s e c u r e d L o a n s 0 . 0 0 0 . 0

0 2 t b 2 1

0 . 0 0 4 . 5 5 T o a l D e t 4 5 . 8 4 7 . 3 6 7 . 0 6 4 7 . 2 0 Total Liabilities

100.00100.0 0100.00100. 00 APPLICATION OF FUNDS: G r o s s B l o c k 1 5 4 . 1 4 1 6 7 . 7 4 2 4 8 . 2 8 1 7 1 . 5 5

Less : Accu mulated De preciation8 3.7392.891 45.19101.2 0N e t B l o c k 7 0 . 4 1 7 4 . 8 5 1 0 3 . 1 0 7 0 . 3 5

L e a s e A d j u s t m e n t 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 C a p i t a l W o r k i n P r o g r e s s 1 1 . 7 6 3 . 6 0 2 . 1 5

0 . 0 0 I n v e s t m e n t s 0 . 2 6 0 . 2 5 0 . 3 4 0 . 2 1 Current Assets, Loans & Advances

I n v e n t o r i e s 1 2 3 . 1 8 1 3 9 . 4 6 2 0 3 . 2 7 7 9 . 9 1 S u n d r y D e b t o r s 1 9 . 4 0 2 1 . 8 4 3 2 . 7 1 1 2 . 2 8 C

a s h a n d B a n k 6 2 . 3 6 6 2 . 5 4 7 4 . 1 1 4 2 . 3 4 L o a n s a n d A d v a n c e s 6 . 8 7 1 0 . 1 3 1 7 . 6 4 4 0

. 2 6 T o t a l C u r r e n t A s s e t s 2 1 1 . 8 1 2 3 3 . 9 7 3 2 7 . 7 2 1 7 4 . 8 0 Less : Current Liabilities and Provisions

C u r r e n t L i a b i l i t e s 1 9 3 . 3 2 0 7 . 7 2 3 5 . 2 7 1 2 4 0 8

i 1 2 .

37

Micro Analysis of Amul Dairy and Gujarat Co-operative

Milk Marketing FederationDownload ed from a2zmba.blogsp ot.com P r o v i s i o n s 4 . 6 7 4 . 9 5 8 . 0 3 1 8 . 6 7

T ot al Cur r ent Liabi l i ties197. 98 212. 673 33 . 31142. 74 N e t C u r r e n t A s s e t s 1 3 . 8 2 2 1 . 3 0 5 . 5 8 3 2 .

0 5 Miscella neous Expe nses not wr itten off0.0 00.000.000 .00D e f e r r e d T a x A s s e t s 3 . 7 5 0 . 0 0 0 . 0 0 1 . 2

0 D e f e r e d T a x L i a b i l i y 0 . 0 0 0 0 0 0 . 0 0 . 8 0 N e t D e f e r e d T a 3 . 7 5 0

r t . 3 r x .

0 0 0 . 0 0 - 2 . 6 1 Total Assets 100.00100.0 0100.00100. 00 C o n t i n g e n t L i a b i l i t i e s 3 0 2 . 1 8 2 6 3 . 2 6

2 0 4 . 4 8 1 0 . 8 9

Interpreta tion
The proportion of debt in total liabilities has increased from 17.06% in 2003

to 47.20% in2004. Total Shareholders funds have decreased from 82.94% in 2003 to 52.80% in 2004.Assets have reduced by

around 30% in the year 2004; this may be due the sale of assets.Current assets have reduced as compared to 2003. Working

capital was negative in 2003and in 2004 there has been a considerable im provement of ar ound 670%. Als o,contingent liabilities have

reduced to a great extent, which is a positive sign.

Cash Flow Analysis of GCMMF

Rs. In crore2 0 0 4 2 0 0 3 Cash Flow Summary Cash and Cas h Equivalents at Beginning of the year84 .0879.18N e t

C a s h f r o m O p e r a t i n g A c t i v i t i e s 5 0 . 4 1 2 9 . 5 Net Ca sh Used in Investing Activities13.9517.39Net

Cash Used in Financi ng Activiti es-47.567.21Net In c/(Dec) in Cash and Cash Equiv alent1 1 . 1 4 . 9 Cas

h and Cash Equivalents at End of th e year72.98 84.08

38

Micro Analysis of Amul Dairy and Gujarat Co-operative Milk Marketing FederationDownload ed from a2zmba.blogsp ot.com

Interpreta tion

Gains from oper ating activities have increased 70.44% in 2004. Uses of cash ini nvestment activities have decreased 19% in 2004. There has

been whopping increase infinancing activities that is at 559% in 2004.Thus there has been a decrease 13% in

cash in 2004 from 2003